SEGMENT REPORTING

12 Months Ended

Dec. 31, 2024

SEGMENT REPORTING [Abstract]

SEGMENT REPORTING

16. SEGMENT REPORTING

The Company’s manages its business, evaluates performance and allocates resources based on two reportable business segments, Campus Operations and Transitional.

Campus Operations – The Campus Operations segment includes campuses that are continuing in operation and contribute to the Company’s core operations and performance.  All of the campuses continuing in operation are classified in this segment. The majority of the campuses offer programs across various areas of study.

Transitional – The Transitional segment refers to campuses that are marked for closure and are currently being taught-out, in addition to campuses that are held-for-sale or sold.  As of December 31, 2024, the net assets for the Summerlin, Las Vegas campus were classified as held for sale, with operating results classified within the Transitional segment.  The sale of the campus was consummated effective January 1, 2025.  In addition, the Company closed the Somerville, Massachusetts campus in the prior year. It was fully taught-out as of December 31, 2023.  This campus was classified in the Transitional segment in the prior year’s statement of operations.

The individual operating segments have been aggregated into the two main reportable segments based on the method by which our Chief Operating Decision Maker (“CODM”) 1) evaluates performance and allocates resources and 2) as a result of the Company’s judgment, that the reporting units have similar products, production processes, types of customers, methods of distribution, regulatory environment and economic characteristics.  The Company’s CODM is comprised of a team of executives deemed the “Executive Committee” which is made up of the following individuals:

1. Scott Shaw – Chief Executive Officer and Director

2. Brian Meyers – Executive Vice President, Chief Financial Officer, and Treasurer

The CODM assesses segment financial performance by reviewing segment revenue and segment operating income, which includes certain Corporate overhead allocations relating directly to the segments disclosed.  Some of the allocated costs include the centralization of the Company’s financial aid process, national sales and receivables and default costs.  The CODM will make decisions to allocate resources based on the review of monthly, quarterly and annual financial information categorized by segment.  The financial information is presented to the CODM using actual-to-actual results and budget-to-actual results.

	Year Ended December 31,
	Consolidated									Campus Operations						Transitional								Corporate
	2024			2023			2022			2024		2023		2022		2024			2023			2022		2024			2023			2022
REVENUE	$	440,064		$	378,070		$	348,287		$	432,966	$	367,233	$	330,896	$	7,098		$	10,837		$	17,391	$	-		$	-		$	-
COSTS AND EXPENSES:
Instructional		90,566			85,311			79,021			88,207		82,228		75,274		2,359			3,083			3,747		-			-			-
Books and Tools		32,146			26,177			23,623			31,161		24,802		21,642		985			1,375			1,981		-			-			-
Facilities		46,791			44,647			40,327			45,842		42,475		38,071		949			2,172			2,256		-			-			-
Depreciation		12,256			6,140			5,775			12,200		6,030		5,669		56			110			106		-			-			-
Educational services and facilities		181,759			162,275			148,746			177,410		155,535		140,656		4,349			6,740			8,090		-			-			-
Sales and marketing		75,236			65,553			61,241			73,532		64,159		58,561		1,704			1,394			2,680		-			-			-
Student services		21,874			18,693			16,077			21,012		17,314		15,004		862			1,379			1,073		-			-			-
Bad debt		56,578			41,637			34,915			55,600		39,978		32,731		975			1,659			2,187		3			-			(3	)
Administrative		89,415			82,622			69,571			41,235		37,976		35,068		1,236			2,030			2,066		46,944			42,616			32,437
Depreciation		700			630			587			-		-		-		-			-			-		700			630			587
Selling, general and administrative		243,803			209,135			182,391			191,379		159,427		141,364		4,777			6,462			8,006		47,647			43,246			33,021
Loss (gain) on sale of assets		2,119			(30,918	)		(177	)		619		20		28		11			1			-		1,489			(30,939	)		(205	)
Gain on insurance proceeds		(2,794	)		-			-			-		-		-		-			-			-		(2,794	)		-			-
Impairment of goodwill and long-lived assets		-			4,220			1,049			-		4,220		1,049		-			-			-		-			-			-
Total costs and expenses		424,887			344,712			332,009			369,408		319,202		283,097		9,137			13,203			16,096		46,342			12,307			32,816
OPERATING INCOME (LOSS)	$	15,177		$	33,358		$	16,278		$	63,558	$	48,031	$	47,799	$	(2,039	)	$	(2,366	)	$	1,295	$	(46,342	)	$	(12,307	)	$	(32,816	)